In this video, we will be learning how to start a furniture business by Shaun Academy. James will be our business consultant for this episode.
Understanding how to start your own custom design furniture business is critical for any furniture designer who wishes to sell their own designs. You can start your own custom design furniture business whether you have a degree in furniture design and manufacturing or have trained yourself how to design and manufacture unique pieces.
If you have a keen eye for what customers want and can adjust your designs to their needs you have the framework for starting your own custom design furniture business. However, in order to make your startup lucrative, you’ll need to be a skilled furniture designer and manufacturer as well as understand how to manage a business.
So here are the things to consider when starting your own furniture business.
Identify your Niche
Determine what type of furniture you will make, such as home furnishings, office furniture, or cabinets. Then indicate the materials you intend to use, such as wood, metal, or upholstery. Lastly, determine your target market and decide whether your target market is residential, resorts, or commercial customers.
You’ll also need to decide whether you want to sell only locally or to a larger market. Conduct a market analysis to determine the demand for your furniture and determine your target market’s distinguishing characteristics and needs.
Examine your competitors to see what they don’t provide. This will tell you if your product fills a gap in the market and finally, a market analysis investigates the most appropriate pricing for your product and target market.
Physical Store or an Online Business
One option is to rent a storefront that includes a workshop and sell your furniture to walk-in customers. Alternatively, you could create a website and only accept online orders, or you could do both. Whichever options you select will have a significant impact regarding the physical location of your business. It also has an impact on the amount of money required to start your business, and you will need to plan accordingly.
Decide on a Location
If you intend to open a physical store, look for a location that meets the needs of your customers. For example, if you’re making custom cabinets, find a large enough space to display various options. If your target market is residential, select a location that is easily accessible and accommodates parents with children and strollers. Consider the accessibility of your business to your suppliers as well.
Choose a location where your suppliers can easily ship and take the time to investigate the zoning laws and regulations in your area.
Determine where you can operate your business. Even if you plan to conduct all of your business online you will still need to find a location for your workshop. Find a location that is both large enough for your work and convenient for your suppliers.
A warehouse space may be required depending on the type of materials you need to keep on hand, choose one that is large enough to accommodate supplier’s pick up and drop off of materials.
Don’t pick a location based solely on the lowest rent rather choose the best location you can afford that both displays your furniture and accommodates your customers efficiently.
Create and Select a Business Structure
Corporation partnership or sole proprietorship. The business structure you select has an impact on how you file your income taxes.
To assist you in making this decision seek the advice of a Certified Public Accountant, a lawyer, or another business advisor.
Register your company with the Secretary of State in the state where you intend to operate. Then get a federal tax identification number from the IRS and check with your state to see if you also need a state tax identification number.
Lastly, take the information you have learned here, and think about how it applies to your business plans specifically. Specificity is key to a successful business, so get out there and make it happen!